MBT Bancshares : Audited Financials Statements 12/31/2021

MBT BANCSHARES, INC. AND SUBSIDIARY

DECEMBER 31, 2021 AND 2020

METAIRIE, LOUISIANA

TABLE OF CONTENTS

Audited Financial Statements:

Independent Auditor's Report	Page	1-2
Consolidated Balance Sheets	3
Consolidated Statements of Income	4
Consolidated Statements of Comprehensive Income	5
Consolidated Statements of Changes in Stockholders' Equity	6
Consolidated Statements of Cash Flows	7-8
Notes to Consolidated Financial Statements	9 - 44

2322 Tremont Drive ● Baton Rouge, LA 70809

1254 Del Este Avenue, Suite 1101 ● Denham Springs, LA 70726

650 Poydras Street, Suite 1200 ● New Orleans, LA 70130

Phone: [phone] ● Fax: [phone]www.htbcpa.com

INDEPENDENT AUDITOR'S REPORT

To the Stockholders and

Board of Directors

MBT Bancshares, Inc. and Subsidiary Metairie, Louisiana

Opinion

We have audited the consolidated financial statements of MBT Bancshares, Inc. (a Louisiana Corporation) and its Subsidiary, which comprise the consolidated balance sheets as of December 31, 2021, and 2020, and the related consolidated statements of income, comprehensive income, changes in stockholders' equity, and cash flows for the years then ended, and the related notes to the consolidated financial statements.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of MBT Bancshares, Inc. and its Subsidiary as of December 31, 2021, and 2020, and the results of their operations and their cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion

We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of MBT Bancshares, Inc. and its Subsidiary, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about MBT Bancshares, Inc. and its Subsidiary's ability to continue as a going concern for one year after the date that the consolidated financial statements are issued.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the consolidated financial statements.

In performing an audit in accordance with GAAS, we:

• • Exercise professional judgment and maintain professional skepticism throughout the audit.

• • Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements.

• • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of MBT Bancshares, Inc. and its Subsidiary's internal control. Accordingly, no such opinion is expressed.

• • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the consolidated financial statements.

• • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about MBT Bancshares, Inc. and its Subsidiary's ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Respectfully submitted,

New Orleans, Louisiana

April 7, 2022

MBT BANCSHARES, INC. AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

AS OF DECEMBER 31, 2021 AND 2020

Cash and Due From Banks Federal Funds Sold

Total Cash and Cash Equivalents Interest Bearing Deposits with other Banks Securities Available-for-Sale

Mortgage Loans Available-for Sale Loans, Less Allowance for Loan Losses of

ASSETS 2021

2020

$

• 184,745,354 $ 2,925,000

74,240,537 350,000

187,670,354 74,590,537

1,488,590 1,735,223

114,067,685 37,360,056

425,765

849,887

$3,703,330 for 2021 and $3,376,091 for 2020 288,264,089 350,974,493

Bank Premises and Equipment, Net Accrued Interest Receivable Investment in FNBB Stock Investment in FHLB of Dallas Stock Other Investments

Cash Surrender Value of Life Insurance Deferred Tax Asset

Other Assets

Total Assets

Deposits:

Non-Interest Bearing Interest Bearing

Total Deposits Subordinated Debt Obligations Accrued Interest Payable Deferred Tax Liability

Obligations Under Operating Leases Other Liabilities

Total Liabilities

LIABILITIESSTOCKHOLDERS' EQUITY

Common Stock - $1 Par Value, 2,100,000 Shares Authorized

2,043,543 Issued and Outstanding Capital Surplus

Retained Earnings

Accumulated Other Comprehensive Loss

Total Stockholders' Equity

Total Liabilities and Stockholders' Equity

12,290,587 11,932,803 1,868,526 2,159,639

$

612,539,419

$

• 195,287,427 $ 151,293,099

• 350,382,041 287,285,575

• 545,669,468 438,578,674

18,000,000

39,082 61,481

- 508,500

3,180,941 2,578,286

1,199,511 1,302,559

568,089,002

$

33,780,621 31,150,696

(1,330,204) 44,450,417

$

612,539,419

The accompanying notes are an integral part of these financial statements.

250,000

250,000

1,048,300

1,047,300

995,000

895,000

2,901,177

113,855

2,988,881 -

1,155,491

1,183,352

$ 485,967,171

-443,029,500

2,043,543 $ 2,043,543

9,956,457 9,956,457

(213,025) 42,937,671

$ 485,967,171